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2024-01-01

Circular No. 97 Cash Deposits in Shekel Currency

The Palestine Monetary Authority issued Circular No. 97/2024 requiring all banks operating in Palestine to accept cash deposits in Shekel currency without imposing unjustified restrictions or linking them to other financial services. The directive mandates that banks adhere to due diligence procedures, respect existing agreements regarding deposit limits, and strictly comply with regulations concerning ATM withdrawals and fees. The Authority emphasized that it will enforce legal measures, including financial fines, against any bank that fails to comply with these requirements.

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Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Decision issued by the Palestine Monetary Authority Circular No. (97/2024) To all banks operating in Palestine Date: Sunday, October 13, 2024

Subject: Cash Deposits in Shekel Currency

In continuation of Palestine Monetary Authority Circular No. (2022/316) and No. (2024/78) regarding the regulation of cash deposit processes in customer accounts, and for the purpose of mitigating negative effects resulting from banks imposing unjustified restrictions on accepting cash deposits in Shekel currency in customer accounts or linking the deposit process to the customer obtaining financial services or banking facilities, and in light of the understandings reached with unions and associations, specifically, all banks are requested, under penalty of responsibility, to comply with the following:

  1. Accept cash deposits in customer accounts after applying due diligence and enhanced due diligence procedures, and do not cite refusal to accept cash deposits under current conditions.

  2. Continue to accept cash deposits in Shekel currency in accordance with agreements, ceilings, or understandings reached with customers and in proportion to their operations and commercial activities.

  3. Continue to regulate the employment relationship, especially with major customers and owners of commercial interests, regarding cash deposits and withdrawals and permitted fees, pursuant to specific and clear agreements.

  4. Do not condition the acceptance of deposits on obtaining financial services or banking facilities, and consider the needs and interests of citizens to deposit cash.

  5. Fully comply with the provisions of the instructions regulating cash withdrawal and deposit operations via ATMs and related fees and commissions, and do not impose restrictions on cash withdrawal and deposit operations via ATMs that contradict these instructions.

6. Encourage customers to use electronic payment methods and tools, and enhance the spread of point-of-sale terminals and electronic financial channels.

Reaffirming that the Palestine Monetary Authority will not tolerate taking deterrent legal measures against any non-compliant bank, including imposing financial fines in accordance with the provisions of the law.

Supervision Group Palestine Monetary Authority

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www.pma.ps

Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Postal code: P6160675 | Postal code: P6160675 Tel: +970 2 2415251 | Tel: +970 2 2415251 Fax: +970 2 2415310 | Fax: +970 2 2415310 info@pma.ps

2

www.pma.ps

Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Postal code: P6160675 | Postal code: P6160675 Tel: +970 2 2415251 | Tel: +970 2 2415251 Fax: +970 2 2415310 | Fax: +970 2 2415310 info@pma.ps

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